The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu City Council Committee on Budget on Aug. 20, 2024.
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Aug. 20, 2024, 9 a.m.
Honolulu Hale
To: Honolulu City Council, Committee on Budget
Radiant Cordero, Chair
Matt Weyer, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: Bill 43 (2024) — RELATING TO REAL PROPERTY TAXATION
Aloha Chair Cordero, Vice-Chair Weyer and other members of the Committee,
The Grassroot Institute of Hawaii supports — and offers an amendment to — Bill 43 (2024), which would allow homeowners 65 or older to pay property taxes in four yearly installments instead of two.
High property taxes can be a financial strain for older homeowners living on fixed incomes. The twice-annual bills can result in shocks that could be avoided if the payments were spread throughout the year.
The Lincoln Institute of Land Policy, based in Massachusetts, has endorsed a monthly approach, noting that “several U.S. jurisdictions offer monthly property tax payment options that allow taxpayers to set up automated transfers from bank accounts or mail monthly checks.”[1]
The Council should consider amending the bill to allow a monthly payment option — which could make budgeting even easier for seniors.
Table 1 shows the average property tax bill in Honolulu as a dollar figure and as a percentage of Honolulu homeowners’ median monthly income, which the American Community Survey reported in 2022 was $9,917.
Source: Table 25119, 2022 American Community Survey, 1-Year Estimates, U.S. Bureau of the Census; and fiscal 2025 residential class parcel data from the Real Property Assessment Division, Honolulu Department of Budget and Fiscal Services.
For seniors — especially those with a lower income than the median reported by ACS — the monthly payment option could be even more beneficial. It could result in smaller financial shocks, although giving older homeowners the option to pay their taxes in four installments would also improve the status quo and help respect everyone’s financial situations.
So either way, this bill is a good one.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Adam Langley and Joan Youngman, “Property Tax Relief for Homeowners,” Lincoln Institute of Land Policy, November 2021, p. 54.
